The Economics of Grid Defection: When and Where Distributed Solar Generation Plus Storage Competes with Traditional Utility Service

Though many utilities rightly see the impending
arrival of solar-plus-battery grid parity as a threat,
they could also see such systems as an opportunity to
add value to the grid and their business models. The
important next question is how utilities might adjust
their existing business models or adopt new business
models—either within existing regulatory frameworks
or under an evolved regulatory landscape—to tap into
and maximize new sources of value that build the best
electricity system of the future at lowest cost to serve
customers and society. These questions will be the
subject of a forthcoming companion piece.